FARMINGTON — With a townwide decrease in total valuation, the 2016 property tax rate for Farmington is slated to increase almost 50 cents per $1,000 worth of assessed property.

After discussing several tax scenarios at a special meeting Monday night, selectmen authorized town assessor John O’Donnell to capture $125,000 in the downtown tax increment financing district and generate an overlay of $25,000 for the 2016 tax year, which result in a tax rate of $19.28 per $1,000 worth of assessed property. Farmington’s current tax rate is $18.80.

O’Donnell will be working on the tax commitment in the coming days, and tax bills will be sent out to residents by the end of the week.

A decrease in the valuation of real estate and personal property combined with an increase in homestead exemptions resulted in a loss of $3,434,922 from the town’s valuation base for 2016, according to data presented by O’Donnell at Monday’s meeting.

The decrease in valuation was due to several things, including a couple properties within the town becoming tax exempt, others being designated as tree growth areas and a couple properties being designated farmland.

O’Donnell typically recommends the town generate $50,000 in overlay, which is the amount of revenue over the cost of operating expenses that the town is allowed to generate.

However, selectmen voted to have only a $25,000 overlay for this year so that $125,000 in tax revenue could be captured within the downtown tax increment financing district without increasing the tax rate beyond $19.28 per $1,000 worth of assessed property.

The town has been using the TIF to fund the nearly completed Church Street parking lot project. Once all the bills are paid on that project, the TIF will stand at a negative $72,000 balance. Once the newly committed $125,000 in revenue goes into the TIF and the Church Street project expenses are paid for, the TIF will have a balance of approximately $50,000.

In other business at Monday’s meeting, selectmen authorized the use of $4,230 in TIF funding for about 60 plants and shrubberies to be planted at the Church Street Parking lot.

Those must be planted alongside the Cony Street side of the project to ensure the strip of soil in between the parking lot and the road does not erode.

A ribbon cutting ceremony for the parking lot is scheduled at 5:30 p.m. Tuesday, Sept. 6.

Lauren Abbate — 861-9252

[email protected]

Twitter: @Lauren_M_Abbate